New Delhi, Oct 15: Industry favours a hike in FDI cap, single regulator for both insurance and pension sector and long-term debt papers among other reform measures to boost growth in the insurance segment, a Ficci survey said today. Although there has been expansion in both life and general insurance segment, the survey said lack of clarity in brokers role, absence of long-term papers, tax issues, FDI cap and lack of depth of financial market in India was hindering the growth of the insurance sector.
The Ficci survey on “Present state of Indian insurance sector,” carried out on 147 players in the insurance industry, said a majority 79% respondents felt there should be one regulator for pension and insurance.
Most of them said government should extend interest subsidy to private players as it was offered to LIC for its Varishtha Pension Bima Yojana. They also pitched for hiking the FDI limit from the present 26%. Government should allow them to invest in funds abroad, they said. About 70% of the players said the tariff regime in general insurance segment should be lifted within 2-4 years.
Bureau Report